Coonoor Tea Price Witnesses High Trend

Coonoor: Prices increased a tad at the Sale No: 17 of the auctions held by the Coonoor Tea Trade Association (CTTA) here on April 27, as the demand was fair enough to absorb the low volume of improved quality teas on offer. Only 7.17 lakh kg were offered for sale. But, the prices rose only 50 paise to one rupee a kg as the purchasers chose to adjust the 4 per cent VAT against their bids. On the export front, CIS shippers chose some bolder grades for Rs 44-45 a kg. Exporters to Pakistan bought some select lines teas for around Rs 43. JV Gokal competed for the whole leaf orthodox grades. JFK bought some medium brokens and fannings.
Plainer CTC dusts were barely steady. Lesser high grown orthodox dusts were neglected. Fibrous sorts eased up to Rs 3 a kg. Among the CTC teas from bought-leaf factories, Highfield Estate Special and Homedale Estate got the highest price of Rs 80 a kg. Darmona Estate got Rs 79, Dhavala Estate Rs 78, Professor Rs 77, Vigneshwar Estate and Selva Ganapathy Estate Supreme got Rs 76. Among the orthodox teas from corporate sector, Curzon got the highest price of Rs 136 a kg, followed by Kodanaad at Rs 134. Corsley got Rs 128, Glendale Rs 127, Prammas Rs 125, Tiger Hill and Chamraj Rs 124, Sutton Rs 121, Parkside Rs 117, Erinkadu Rs 114 and Mailoor Rs 110. Quotations held by the brokers indicated bids ranging from Rs 39-40 a kg for the plain leaf grades and Rs 58-64 for the brighter liquoring grades.

Less Response For Special Purpose Tea Fund

Kolkata: The response of tea companies to the Special Purpose Tea Fund (SPTF) this year will be less than hope. As a result, the demand for loan as well as subsidy will be at the most 50 per cent of the estimates, if the current trend is any indication. The current year's loan requirement under SPTF has been pegged at Rs 167.56 crore and the subsidy requirement at Rs 90 crore. The estimates were prepared on the basis of the assumption that during the year a total of 4,095.38 hectares would be brought under replantation, another 2,363.77 hectares under replacement, 6,036.8 hectares for uprooting and 1,136.17 hectares for rejuvenation, totalling 13,632.12 hectares.
Although 300 tea companies covering more than 500 gardens have shown interest in SPTF, the number of applications received so far has been insignificant. The majority of the tea companies showing interest have their activities concentrated in Assam. There are 147 such companies with a total of 300 gardens, followed by West Bengal 100 companies with 129 gardens, Tamil Nadu 20 companies with 23 gardens, Kerala 16 companies with 37 gardens, Tripura 13 companies with 16 gardens and Karnataka two companies with as many gardens.

Even those who did uprooting in 2005 and are now planning replantation will find it hard to obtain assistance under SPTF unless letters of consent accompanies their applications from their respective bankers. Tea Board sources, however, indicate that the cases of those tea companies that had earlier applied for subsidy under a separate scheme, namely, Tea Board's ongoing subsidy scheme, will also be considered for assistance under SPTF.

Vanilla Rates Likely To Gain 10Pc This Year

Kochi: Prospects of a fall in the out put of vanilla beans in the world's largest producer, Madagascar, following six devastating cyclones that tore the Indian Ocean Island during the past three months, could push up its prices this year. However, market sources estimated the loss ranging from 20 to 40 per cent. The world demand for the year is estimated at between 1,500 tonnes and 1,600 tonnes while the total global output is estimated at 2,000 tonnes. The world demand has failed to pick up as anticipated, as the end-users who had switched over to synthetic vanillin when the natural vanilla prices increased to $450-500 a kg about four years ago, have not yet reverted to the natural product.
As the prices have remained below remunerative levels for a long time, some farmers have even decided to remove the plants while others are just pruning them and leaving it without carrying out the pollination. The Indian production is estimated at around 200 tonnes of cured bean. The only solution now to help the Indian growers is to increase the use of natural vanillin in the country. At present, consumption of synthetic vanillin in the country is estimated at round 500 tonne a year and if part of it is substituted by natural vanillin the scope for vanilla cultivation in the country, mainly in the southern states, is enormous. In 2005-06 it has come down to an estimated 1,000 tonne as against an estimated production of 2,300 tonne.

Kochi Tea Auction Witnesses Steady Trend

Kochi: Good general demand lifted up the prices of several dust varieties at the Kochi tea auction. The market opened at last week's levels and medium CTC varieties eased during the course of auction. Best CTC varieties were quoted at Rs 66-77, medium CTC at Rs 57-63 and below medium ranged between Rs 48 and Rs 52. High-grown BOPD was quoted at Rs 75-116, while medium BOPD and secondaries were not quoted. Whole leaf grades remained firm, while medium orthodox broken and whole leaf grades remained firm to dearer. CTC varieties were barely steady. Medium orthodox saw demand from exporters to CIS countries while exporters to West Asia remained selective. CTC varieties saw better demand from exporters. Best Nilgiri varieties were quoted at Rs 75-85, medium orthodox was at Rs 55-80 and plain orthodox ranged between Rs 45 and Rs 52. Best CTC leaf varieties fetched Rs 52-57, while medium CTC ranged between Rs 45 and Rs 48. Kodanad BOPD fetched the top price in the dust segment at Rs 116.

CACP Recommends Huge Increase In Pulses MSP

New Delhi: Apart from an all-time-high increase of Rs 65 per quintal for paddy, the Commission for Agricultural Costs and Prices (CACP) has suggested big jumps in the minimum support price (MSP) of kharif pulses. For the ensuing 2007-08 crop, the CACP has recommended an MSP of Rs 1,550 per quintal for tur (arhar or pigeonpea) and Rs 1,700 per quintal for mung (green gram), against the corresponding Rs 1,410 and Rs 1,520 per quintal levels in 2006-07. The MSP increases suggested for oilseeds are more moderate: Rs 1,020-1,050 per quintal for yellow soyabean and Rs 1,520-1,550 per quintal for groundnut-in-shell.

Tea Growers To Get Rs 74 Lakh Assistance

New Delhi: The Commerce Ministry has declared that 14,928 tea growers will get financial assistance of Rs 74.64 lakh from the Price Stabilisation Fund (PSF) Trust for 2007-08 on the basis of the Price Spectrum Band 2006. This decision follows the announcement of the tea crop for 2006 as a normal year, as per the calculations of the Price Spectrum Band on the basis of the seven year's moving average of international price for the commodity, the annual average domestic price of the beverage being Rs 63.62 per kg.

Pulses Importers Association Rejects Subsidy

Mumbai: The Union Government's reported decision to sanction a 15 per cent subsidy to parastatals and public sector trading companies for importing large volumes of pulses is an aberration that is not justified and needs an urgent review. Conceded that the country is chronically short of pulses, in addition to several other commodities; supplies have to be augmented through imports. Pulses imports are absolutely free - under open general license and no customs duty. In its anxiety to be seen as protecting consumer interest and controlling inflation, the Centre has unwittingly sent out a strong bullish signal to the world pulses market about intention to import as much as 15 lakh tonnes through public sector agencies.
The Pulses Importers Association has objected to grant of subsidy and demanded that it be extended to the private trade also. In a free trade regime and in an environment of economic liberalisation, there is no reason to treat Government parastatals differently. Corporates such as STC, MMTC and PEC are well-established trading houses and must do business on merits. Far from advancing competitiveness and efficiency, the subsidy regime will mean supporting inefficient traders over others. Despite a free trade regime, open market rates have remained steady for various reasons including omissions and commissions of policymakers for long years. Pulses poor man's protein did not receive the kind of policy support that was bestowed on fine cereals.

Utter indifference to raising domestic out put has resulted in shortage and dependence on imports. Opening up the market without corresponding and vigorous efforts to create conditions for sustained growth of farm production is sure to result in demand-supply mismatch and unsettled market conditions that may hurt the interests of stakeholders. For instance, public sector companies can begin to undertake procurement of pulses at market rates. Government companies can play a role in this as part of corporate social responsibility.

Pulses Mart Faces Bearish Phase

Due to tepid demand, better arrivals and appreciating rupee, the pulses market in the country is going through a bearish phase. And the trend is expected to continue for another fortnight. Chana has been hit the hardest. Commodity analysts said unless the chana market recovered, improvement in tur, urad, and moong (which also weakened in the last two weeks) market conditions was highly unlikely. In Delhi, the spot prices reached a level of Rs 2,225 a quintal, a fall of over 9 per cent from the previous day. Three weeks ago, the prices were hovering above Rs 2,450 a quintal level. In Latur, the rates slumped to Rs 2,275 a quintal, a drop of Rs 75 a quintal in the last 7-10 days. According to market reports, chana output from Rajasthan would be much more than the estimated 6 lakh tonnes.Bikaner, a delivery centre for chana in Rajasthan, witnessed arrival of close to 30,000 bags on April 25. A majority of the state's chana crop is heading towards Delhi. On April 25, around 700 tonnes reached Delhi mandis. Sources in the mandis there said a further dip of Rs 25-50 a quintal was on the cards. Analysts, however, believed the overall scenario was bullish, and that the total country-wide output would be 50 lakh tonnes instead of the earlier estimated 55 lakh tonnes.

Rubber Witnesses Mixed Tend

Kottayam: Physical rubber prices saw a mixed trend on April 25. Global rubber rates were bearish and hence, sheet rubber closed slightly down at Rs 86.50 against Rs 86.75 and Rs 87 a kg respectively at Kottayam and Kochi. The rubber futures were visibly weak in leading commodity exchanges. The May contract down to Rs 87.70 from Rs 88.80 a kg on MCX. On NMCE, the near month May contract decline to Rs 86.81 (87.84), June to Rs 90.10 (90.89), July contract to Rs 92.20 (93.05) and August to Rs 92 (92.68) per kg for RSS 4. RSS 3 spot slipped further to Rs 96.34 from Rs 97.09 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 86.50 (86.75); RSS-5: 85.50 (85.50); ungraded: 84.50 (84.75); ISNR 20: 85.25 (85.25) and latex 60 per cent: 63.65 (63.65).

Maize Futures Face Bearish On Arrivals From Bihar, AP

Mumbai: Maize futures are facing a bearish trend on the back of the rabi crop from Bihar and Andhra Pradesh hitting the market. However, in the spot market the prices are stable and moving in a range of Rs 715 to Rs 725 a quintal. The contract for May delivery fell by about 6 per cent to Rs 741 a quintal today from Rs 790 a quintal a fortnight ago. According to commodity analysts, the futures prices may go down further. The country expects around 2.3 million tonnes of the rabi maize. Despite this, however, there will be an overall shortage of 2 million tonnes. The rabi crop arrival will continue till mid-May. Bihar's crop that reached Delhi is reported to have higher moisture content. According to global standards, moisture content should be 14 per cent, but the crop from Bihar has a moisture level of 25 per cent. The spot rate, on April 24, was around Rs 720 a quintal in mandis. In the meantime, despite the rupee appreciation, maize imports have not proved viable so far. Contrary to reports suggesting a global scarcity of maize and a significant chunk going for ethanol production, the US may have enough to export.

Coimbatore Tea Auctions Witnesses Fair Demand

Coimbatore: The total offerings at the Tea Trade Association, Coimbatore, amounted to 3.51 lakh kg of tea of which leaf grades totaled for 1.50 lakh kg and the rest dust. There was fair demand for the orthodox leaf grades. All sorts tended lower by Rs 2 to Rs 4 a kg. CIS lent fair support, major blenders were quiet and internal demand limited on whole leaf grades. There was fair support for the brighter liquoring CTC leaf from upcountry buyers. Others were irregular and ruled lower by Re1/kg. HLL was selective on smaller grades and internal demand fair for smaller grades of tea. The CTC dust grades witnessed good demand. Internal purchasers lent good support. Exporters remained quiet. The orthodox high grown ruled between Rs 63 and Rs 76 a kg while best CTC dust grades ranged between Rs 62 and Rs 71/kg.

Manjilas Aims To Expand Market For Rice Products

Kochi: Thrissur-based Manjilas Group, which markets rice and rice-based products under the brand name Double Horse, is expanding its market to capitalise on the growing demand for rice products in India and abroad. The company aims a business turnover of Rs 121 crore in the current fiscal and is hoping a three-fold growth by next year and a 10-fold growth in three years. Nutritious food products, various types of curry mixes and retort product dishes will also be added to the product portfolio soon.
The company, with a turnover of Rs 65 crore, has a market share of nearly 20 per cent. Manjilas currently reaches 20 lakh households through 5,000-plus retail dealers worldwide. The company is marketing its products in 22 countries and plans are afoot to cover 75 countries, considering the enquiries pouring in from places like Ireland, New Zealand, and Australia. Sensing the fast-changing lifestyle and eating habits of people, due emphasis will be given to promote instant foods and ready-to-eat products. It had selected some places near Thrissur and had earmarked an investment of Rs 6 crore for the project in the first phase.

Rubber Price Witnesses Steady Trend

Kottayam: The domestic physical rubber rates continued to remain neutral on April 24. An almost steady trend in the Japanese markets took the fire out of the traders and sheet rubber closed flat at Rs 86.75 a kg as on April 23. The futures were also in a steady mood on NMCE. The May contract concluded the session at Rs 87.80 (87.49), June at Rs 90.85 (90.79), July at Rs 92.99 (99.91) and August at Rs 92.55 (92.70) per kg for RSS 4. The volumes were 1,318 (1,712) tonnes. The May contracts ended slightly better at Rs 88.80 against Rs 88.29 a kg on MCX. Spot rates were (Rs/kg: RSS-4: 86.75 (86.75); RSS-5: 85.50 (85.50); Ungraded: 84.75 (84.75); ISNR 20: 85.25 (85.25) and Latex 60 per cent: 63.65 (63.65).

Rubber Major Exporters Meet Will Be Convened On April 26

Kottayam: Since the international rate rules much higher than the domestic price, export will be profitable and, therefore, the Rubber Board will expedite the steps for export. For this a meeting of major exporters will be convened on April 26. The companies functioning under the Rubber Board have been urged to enhance exports. The currencies of major rubber producing countries have recently beefed up against dollar. It was the reason why the prices shoot up in the international market. No decision has so far been taken to import rubber from Thailand at reduced tariff by the Govt and the propaganda against this is quite baseless.

Rubber Witnesses Steady Trend

Kottayam: Spot rubber closed unchanged on April 23. RSS 4 finished flat at Rs 86.75 and Rs 86.50 a kg respectively at Kottayam and Kochi and it was also reported that there were marginal purchasing at lower levels from major manufacturers. The May contract declined to Rs 87.50 (88.38), June to Rs 90.60 (91.78), July to Rs.92.90 (94.08) and August contract to Rs 92.99 (93.92) per kg for RSS 4. The May contract weakened to Rs 88.60 a kg from Rs 89.05 on MCX. The volumes on NMCE totalled 1,712 (1,078) tonnes, while the open interest was quoted at 10,266 (10,136) tonnes with 5,147 lots in May, 3,641 lots in June, 1,245 lots in July and 233 lots in August. The May futures for RSS 3 declined to 271.2 Yen (Rs 95.51) a kg from 274.7 Yen at TOCOM. Its spot settled weak at Rs 99.41 from Rs 100.77 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 86.75 (86.75); RSS-5: 85.50 (85.50); ungraded: 84.75 (84.75); ISNR 20: 85.25 (85.25) and Latex 60 per cent: 63.65 (63.65).

Rehabilitation Package For 33 Tea Gardens Closed In Kerala

New Delhi: The Department of Commerce is proposing a revival package for 33 tea gardens lying closed in Kerala, Assam and West Bengal.The rehabilitation package for closed tea gardens is now engaging the attention of the Group of Ministers on plantation sector, headed by the Union Minister of Agriculture and Food, Mr Sharad Pawar. Once the GoM works on the nitty-gritty of the issue, it will be send to the Cabinet Committee on Economic Affairswhich will take a final call. The 33 closed tea gardens, 17 were in Kerala, 14 in West Bengal and two in Assam.
The price recovery from 2004, 103 tea gardens had reopened, leaving 33 tea gardens closed as on April 1, 2007. The outstanding loans of the closed 33 tea gardens amount to Rs 184.05 crore. The loans might probably be converted into term loans with a moratorium period of five years. The simple interest on bank loans would be about Rs 80.7 crore and the share of the Government would be Rs 27 crore. The package also proposes waiver of Tea Board loan of Rs 3.92 crore, comprising both principal loan amount and interest. The waiver of damages on Employees Provident Fund (EPF) imposed by EPFO authorities on these closed gardens costs another Rs 18.70 crore. The total amount of working capital is likely to be Rs 51 crore per year, while the financial implication of the interest subsidy for five years adds up to Rs 7.33 crore.

Rubber Witnesses Steady Trend

Kottayam: The weekend saw firm closing in physical rubber prices. Sheet rubber increased to Rs 86.75 a kg from Rs 86 a kg, while the trend remained mixed and the volumes better. The repeated assurances of Rubber Board Chairman against rubber imports instilled confidence in traders. The rubber futures gathered momentum extending on April 20, gains on fresh buying and short covering on NMCE. The May contract improved to Rs 88.38 (86.94), June to Rs 91.78 (90.19), July to Rs 94.08 (92.36) and August to Rs 93.92 (91.98) per kg for RSS 4. The May contract firmed up to Rs 89.31 from Rs 87.79 a kg on MCX. Spot rates were (Rs/kg): RSS-4: 86.75 (86); RSS-5: 85.50 (85); ungraded: 84.75 (84); ISNR 20: 85.25 (85.25) and latex 60 per cent: 63.65 (63.65).

Doubt Over Australian Wheat Crop Size

Mumbai: India could be running the risk of a forced foray into the international wheat market at a time when world market conditions have begun to turn somewhat scary. While the northern hemisphere wheat crop is advancing reasonably well and crop conditions remain favourable, there is a trouble brewing in Australia. Reports suggest that Australia is reeling under a severe drought and agricultural production may take a hit. At 15-16 million tonnes (mt), Australia accounts for about 15 per cent of the global wheat exports. Last year October 2006 too drought affected the Australian wheat crop which fell by an alarming 60 per cent to a mere 10 mt (25 mt previous year). A large opening stock (9.5 mt ) saved the situation. As a result, Australia's wheat exports plunged by a third to 10 mt (mt).
The world market is hoped to take cognisance of the development soon. A four per cent increase in wheat acreage for 2007-08 had so far kept the sentiment in check. Australian wheat is already the highest priced in the world; and, therefore, other origins such as Canada will attempt to garner a larger share of the market that Australia likely to be forced to vacate. For India, it would mean paying more for wheat. Current import prices are in the range of $225-240 a tonne cost and freight. The only silver lining is the firming rupee that may partially neutralise an imminent rise in international wheat prices. Open market prices too have not softened.

Cashew Exports Witness Fall In Value

Kochi: Exports of cashew kernels from the country displayed an increase in terms of volume last fiscal but fell in terms of value on low unit value realisation. During the last fiscal, 1,18,540 tonnes of cashew kernels valued at Rs 2,455 crore were exported against 1,14,143 tonnes valued at Rs 2,515 crore during the previous fiscal. The unit value declined to Rs 207 a kg compared with Rs 220 the previous year. Another factor responsible for the drop in unit value was the increased supply from Vietnam at lower prices, he said. Unlike in India the domestic consumption in Vietnam is negligible and hence, almost the entire quantity is exported.
Non-availability of sufficient quantity of raw nuts pushed up imports of the raw material. Imports stood at 5,92,600 tonnes valued at Rs 1,812 crore as against 5,65,400 tonnes worth Rs 2,163 crore in the corresponding period the previous fiscal. There has been a fall in the unit value of the imported raw nuts to Rs 31 a kg from Rs 38 a kg.

Pepper Futures Regains On Vietnam Rate Soar

Kochi: Pepper futures got well on April 20, on reports of surge in Vietnam pepper prices. Prices had fell on April 19, on rumours but they could not be confirmed from any reliable sources. Vietnam was said to be offering 500 GL on Friday at $3,300 a tonne (f.o.b). Activity in the international market, as a result, was very slow, market observers here said. Investors here were buying NCDEX delivered and around 150 tonnes of pepper was traded almost daily. On NCDEX, April contract moved up by Rs 113 a quintal to Rs 14,872 on April 20. The increase in other contracts was from Rs 179 to Rs 272 a quintal. On NMCE, April contract went up by Rs 191 a quintal to Rs 14,740. The total turnover on NCDEX declined by 4,461 tonnes to 37,380 tonnes while on NMCE, it fell by 653 tonnes to 5,114 tonnes. The total open interest on NCDEX dropped by 1,198 tonnes to 33,954 tonnes. Spot rates increased by Rs 200 a quintal on Friday to Rs 14,400 and Rs 15,000.

Govt Extends Bonus Period For Paddy Procurement

New Delhi: To ensure adequacy of foodgrains in the Central pool, the Government April 19, extended the incentive bonus of Rs 40 per quintal over the minimum support price (MSP) for paddy procurement beyond March 31. In Andhra Pradesh, Chhattisgarh, Orissa, Tamil Nadu and West Bengal, the bonus has been extended till September 30. In Bihar and Kerala, the bonus has been extended till May 31. The Cabinet Committee on Economic Affairs on April permitted the extension of incentive bonus period of Rs 40 per quintal being given for procurement of paddy during the kharif marketing season 2006-07. The bonus was extended over and above the MSP of Rs 580 per quintal and Rs 610 per quintal for common and Grade A varieties respectively.

Pepper Futures Declinei

Kochi: The pepper futures market declined on April 19, despite reported upward swing in the Vietnam price while other origins ruled firm. Increase in margin by the exchanges, NCDEX and NMCE, coupled with rumours that existing 2,500 tonne cap on import of black pepper from Sri Lanka has contributed to the fall. On NCDEX, April contract decreased by Rs 166 a quintal to close at Rs 14,731 on April 19, from Rs 14,897. The drop in other contracts was from Rs 132 to Rs 205 a quintal. April contract, on NMCE, fell by Rs 196 a quintal to close at Rs 14,597 from Rs 14,793. The fall in other contracts was from Rs 200 to Rs 304 a quintal.
The total turnover on NCDEX dropped by 8,791 tonnes to 41,841 tonnes on April 19, , while on NMCE it declined by 1,069 tonnes to 5,767 tonnes. April position declined by 62 tonnes to 940 tonnes, while May and June went up by 394 tonnes and 305 tonnes, respectively, to 18,643 tonnes and 10,743 tonnes. On NMCE, total open interest moved up by 110 tonnes to 4,261 tonnes. May position was at 2,674 tonnes and June at 1,222 tonnes. Coorg pepper was reportedly being traded at below Kerala price and there was selling pressure. And yet, spot prices here ruled steady at previous levels of Rs 14,200 (un-garbled) and Rs 14,800 (MG 1) a quintal on April 19.

Cardamom Rate Increases On Thin Supply

Kochi: Prices of all grades of cardamom increased on thin arrivals at auctions held in Kerala and Tamil Nadu during the week. The total arrivals as on April 17 during the current season showed a fell of 1,084 tonnes to 7,174 tonnes from 8,258 tonnes during the corresponding period last season. Consequently, the sales fell by 1,112 tonnes to 6,603 tonnes from 7,715 tonnes during the previous season. The current arrivals are from the carryover stock of the large growers and traders who are releasing small quantities. The market was really hot on April 18, as the prices of all grades of cardamom increased by around Rs 20 a kg. Bold capsule (8 mm) was fetching Rs 550 a kg while 7.5 mm and 7 mm Rs 450-500 and Rs 400 - 450 a kg respectively. The current bulk was sold at Rs 380 a kg. The average prices continued its upward trend in the auctions. At the KCPMC auction in Kumily on April 15, it moved up to Rs 360.30 a kg. At the CPA auction in Bodinayakannur on April 16, the average price was at Rs 358.70 while at Header Systems auction in Nedumkandam, it increased to Rs 389.57 a kg and on April 18 at CPMC auction in Kumily, it stood at Rs 398.95 a kg. The prices of graded varieties as on April 14 were AGEB Rs 445 - 465, AGB Rs 380 - 390, AGS Rs 365 - 375 and AGS 1 Rs 330 - 340 a kg. Local market prices were AGEB Rs 440 - 450, AGB Rs 370 - 380, AGS Rs 360 - 370 and AGS 1 Rs 320 - 330. Current bulk was fetching Rs 350 - 400 a kg.

Rubber Price Sees Weak Trend

Kottayam: Physical rubber prices maintained to rule weak on April 18. Sheet rubber settled sharply down at Rs 87 against Rs 89 a kg both at Kottayam and Kochi. The rubber futures fell sharply in the morning session but regained the losses completely to finish in green on fresh buying coupled with short covering. On NMCE, the near month May contract concluded the day at Rs 89 (88.59), June at Rs 91.49 (90.89), July at Rs 93.60 (93.59) and August at Rs 92.65 (93) per kg for RSS 4. RSS 4 improved at its May contract to Rs 89.50 from Rs 89.20 a kg on MCX. Spot rubber rates were (Rs/kg): RSS-4: 87 (89); RSS-5: 86 (88); Ungraded: 85 (87); ISNR 20: 86.25 (88.25) and Latex 60 per cent: 64.20 (64.20).

Coonoor Tea Auctions To See 4-Week Low Volume

Coonoor: A volume of 7.46 lakh kg has been catalogued for Sale No: 15 of the auctions of Coonoor Tea Trade Association (CTTA) to take place here on April 19 and April 20. It is some 90,000 kg lower than the offer of last week. It is some 1.12 lakh kg lower than the offer in the corresponding sale of last year. Of the 7.46 lakh kg on offer now, as much as 5.49 lakh kg belong to the leaf grades and 1.97 lakh kg, dust grades. The proportion of orthodox variety is low in both the leaf and dust categories. In the leaf category, only 0.39 lakh kg belong to orthodox while 5.10 lakh kg, CTC variety. In the dust category, only 0.34 lakh kg belong to orthodox variety while 1.63 lakh kg, CTC variety. Given the low volume, prices can improve if the demand stands firm.

Pepper Future Witnesses Sharp Decline

Kochi: Pepper futures saw a sharp decline on April 17, following reports of selling pressure building up in Vietnam and consequent drop in prices. The NCDEX decision not to sanction any exemption on margin also contributed to the fall as many operators were liquidating. However, NMCE will reportedly grant exemption to eligible parties. Vietnam is said to have quoted FAQ 500 GL at $3,050 a tonne (f.o.b) while 550 GL was at $3,200 and V ASTA at $3,600 a tonne (f.o.b). Brazil G2 500 GL was being offered at $3,100 a tonne (f.o.b) and G1 560 GL at $3,200 and B Asta at $3,300 a tonne (f.o.b).
On April 17, April contract on NCDEX fell by Rs 705 a quintal to Rs 14,790. On NMCE, April contract down by Rs 731 a quintal to Rs 14,567. The decline in other contracts was from Rs 144 to Rs 638 a quintal. The total turnover increased by 16,381 tonnes on April 17, to 55,702 tonnes on NCDEX, while on NMCE it declined by 948 tonnes to 6,826 tonnes. The total open interest on NCDEX went up by 1,707 tonnes to 35,558 tonnes. April 17, position was down by 188 tonnes to 1,076 tonnes. May and June increased by 1,540 tonnes and 269 tonnes respectively to 19,132 tonnes and 10,395 tonnes. On NMCE, total open interest moved up by 26 tonnes to 4,333 tonnes.

Coonoor Tea Auctions See Heavy Withdrawals

Coonoor: Prices remained to decline around Rs 2 a kg on the average with huge withdrawals of some grades when a volume of 8.36 lakh kg was offered for sale at the auctions of the Coonoor Tea Trade Association (CTTA) here. As much as 7.66 lakh kg comprised CTC and only 0.70 lakh kg orthodox variety. Again, as much as 6.12 lakh kg belonged to leaf grades and only 2.24 lakh kg dust grades. Although the demand was better for the brighter liquoring teas compared to the previous weeks, purchasers looked for lower bids. So, the price-spread was irregular and some teas lost up to Rs 3 a kg. The exporters to CIS markets were active on the bolder grades. Iraqi shipper preferred the smaller grades.

Tea Sales At Coimbatore Witnesses Fair Demand

Coimbatore: The total offerings at the auction held at the Tea Trade Association of Coimbatore totaled to 3.94 lakh kg, of which leaf grades accounted for 1.86 lakh kg and the rest was dust. HLL remained silent and internal demand, limited to whole leaf grades. Internal buyers and few exporters operated on the orthodox dust. The market remained good for the CTC leaf grades. CTC dust saw good demand. Major blenders lent selective support on medium bolder teas. Internal buyers were active picking good liquoring teas. Export demand was selective for the medium grades. The orthodox high growns quoted between Rs 65 and 85, while the best CTC ruled in the Rs 47 - 53 price range.

Pepper Future Regains

Kochi: The pepper futures market got well on insider information that the decision to introduce increased margin for both buyers and sellers has been deferred. In the international market, Vietnam was said to be slightly softer. Short sellers were reportedly covering. Indonesia is said to have quoted Lampung Asta at $3,950 a tonne (c&f). April contract on NCDEX on Monday shot up by Rs 365 a quintal to Rs 15,460 last April 15. The increase in other contracts was from Rs 469 to Rs 533 a quintal. On NMCE, April contract matured and 261 tonnes delivered. The increase in other contracts was from Rs 63 to Rs 614 a quintal. The total turnover on NCDEX dropped by 2,462 tonnes to 39,321 tonnes, while on NMCE it moved up by 1,978 tonnes to 7,774 tonnes.
The total open interest on NCDEX fell by 2,400 tonnes to 33,851 tonnes on Monday. April position was down by 205 tonnes to 1,264 tonnes as maturity is nearing. May and June positions also declined by 1,734 tonnes and 621 tonnes respectively to 17,592 tonnes and 10,126 tonnes. On NMCE, the total open interest declined by 100 tonnes to 4,307 tonnes. May position was down by 35 tonnes to 2,782 tonnes. Spot rates in tandem with the futures market trend went up by Rs 200 a quintal on Monday to close at Rs 14,500 (un-garbled) and Rs 15,100 (MG 1).

Rubber Dealers Federation Cancel Strike

Kochi: The Indian Rubber Dealers Federation has decided to back out from the proposed rubber hartal called on April 16, in view of the clarification issued by the Union Commence Ministry that there was no move to import natural rubber by the Centre. The Union Commerce Ministry had informed that the Indian side had not made any commitment on reduction of tariff to Thailand for rubber import when the FTA with that country was negotiated recently. The Thailand side had only requested market access for natural rubber, the Ministry had clarified in the communication. The federation had strongly rejected to any import duty reduction in the case of natural rubber in 2005 when the Commerce Ministry began trade negotiations with South Asian countries.

Kolkata Tea Auction Sees Good Demand

Kolkata: The new season's CTC leaf and dust teas saw with good demand at all the three North India auction centres at Kolkata, Siliguri and Guwahati. The prices for best and good Assam ranged between Rs 100 and Rs 130 per kg for the broken grades, while fannings sold between Rs 95 and Rs 105 per kg. CTC Dooars categories ranged from the best, selling between Rs 95 and Rs 105, down to the mediums between Rs 75 and Rs 80 per kg. The local Kolkata purchasers operated for the lower end whole leaf categories. The medium segment sold between Rs 360 and Rs 450 per kg. Orthodox teas on offer were in good demand.

Rubber hartal On April 16

Kottayam: An emergency meeting of the Indian Rubber Dealers Federation, which met here on April 13, has called for a rubber hartal on April 16, protesting the Centre's move to allow large-scale imports by reducing the import duty considerably. The growers should refrain from any plantation activities on the day and the dealers also should paralyse the market activities.

Rubber Declines On Duty Cut News

Kottayam: Driven by the news on import duty cuts, the domestic rubber remained to explore further lows on April 13. Sheet rubber closed at Rs 91 and Rs 91.25 a kg, respectively at Kottayam and Kochi against Rs 92 on Thursday. The rubber futures continued its downward journey on NMCE. RSS 4 declined sharply at its April contract to Rs 89.90 (92.56), May Rs 92.10 (94.20), June Rs 94.90 (97.91) and July to Rs 97.31 (100) a kg, while the May contract for the grade finished the day at Rs 93.35 (94.68) a kg on MCX. The volumes on NMCE amounted 2,725 (1,930) tonnes. The open interest was 10,368 (12,947) lots with 773 lots in April, 5,540 in May, 3,281 in June and 774 lots in July. The May futures for RSS 3 weakened to 283.6 yen (Rs 102.01) from 285.5 yen a kg at TOCOM. Spot rubber prices were (Rs/kg): RSS-4: 91 (92); RSS-5: 90 (91); Ungraded: 89 (90); ISNR 20: 90 (91) and Latex 60 per cent: 64.20 (64.20).

Vanaspati Prices Up On Higher Palm Prices

Vanaspati prices have surged by an average 8-10 per cent in the last three weeks on account of higher prices of crude palm oil (CPO), the primary raw material. Vanaspati prices have increased from Rs 760 (15 kg jar) to Rs 825. The landed price of crude palm oil has gone up from last month's average of $609 a tonne to $675, a rise of nearly 11 per cent. In 2005-06 oil year (November-October), the country imported 2.4 million tonne of CPO. In the November-March period of the current year, about 1 million tonne of CPO have been imported. The crude palm oil is used in production of vanaspati and refined oil. The import duty on CPO was brought down from 67.6 per cent to 61.8 per cent in the 2007-08 Budget. However, the lowering of duty had little impact as international palm oil prices rose significantly. Also the domestic production of oilseeds is down. According to third crop estimates (released by the ministry of agriculture last week), oilseeds production in 2006-07 is 23.26 million tonne, 16.8 per cent down from last year's final estimates of 27.97 million tonne. Farmers in Rajasthan, Haryana and Madhya Pradesh have shifted large tracts of land from oilseeds to wheat and pulses owing to bullishness in these two commodities.

Rubber Falls On Buyer Resistance

Kottayam: Spot rubber surrendered further on purchaser resistance ignoring the positive closing in global trendsetters. Sheet rubber RSS 4 declined to Rs 92 from Rs 93 a kg both at Kottayam and Kochi amidst moderate selling from traders. The April contract for the grade declined to Rs 91.60 (92.66), May contract to Rs 94.25 (95.30), June to Rs 97.61 (99.31) and July to Rs 100.01 (100.97) a kg on National Multi-Commodity Exchange. The open interest on NMCE was quoted at 12,947 (12,962) lots with 3,298 lots in April, 5,570 lots in May, 3,328 lots in June and 751 lots in July. The May futures for RSS 3 increased to 285.5 Yen (Rs 102.64) from 281.8 Yen a kg at TOCOM. RSS 3 (spot) declined by 8 paise to Rs 99.82 (99.90) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 92 (93); RSS-5: 91 (92); Ungraded: 90 (91); ISNR 20: 91 (92) and Latex 60 per cent: 64.20 (64.20).

Procurement Of Wheat Starts On Subdued Note

New Delhi: Procurement of wheat for the 2007-08 rabi marketing season (April-June) has started on a subdued note, with harvesting and mandi arrivals likely to pick up only from the next week. Total market arrivals as on April 11 amounted to 9.98 lakh tonnes (lt), much below 15.62 lt during the corresponding previous period. Of the arrivals, Madhya Pradesh (where the crop is harvested comparatively early) accounted for 4.15 lt, followed by Haryana (2.84 lt), Punjab (1.55 lt), Rajasthan (95,372 tonnes) and Uttar Pradesh (39,271 tonnes). It is apparent that the country is headed for a bumper wheat crop this year, as cumulative arrivals in Madhya Pradesh are more than last year's figure of 2.25 lt. Rajasthan, too, has saw higher mandi arrivals this time. Of the total market arrivals, Food Corporation of India (FCI) and State agencies have procured just 3.92 lt against 11.127 lt purchases made in the comparative previous period. In Rajasthan and Madhya Pradesh, private players are mopping up most of the grain.

Government Regulations Dampen Strawberry Prospects

Pune: The Mahabaleshwar-Panchgani belt, which reports for nearly 85 per cent of India's strawberry produce, is exulting in a bumper crop this year, but prospects for an even better 2008 season are dampened by worries over government regulations. With 1,500 acres already under cultivation and a super season of 9,000 tonnes of fruit under their belt, the 850 farmers in the region are setting their eyes on upping the area to 2,000 acres by July-August when planting starts. The aim for the next season is 15,000 tonnes. Every year new plantation has to be done, as the old plants are susceptible to disease and give poor yield. The All India Strawberry Growers Association, reaffirms that every year delays lead to a last-minute scramble in April/May to get the orders released in time to ensure July deliveries.
The Californian variety that is popular here yields an average of 6-8 tonnes of fruit per acre against 20-25 tonnes when really aggressive farming techniques are used. To give a fillip to the strawberry industry, it pushes for decreasing the duty on plant imports, including the prevailing quarantine charge of Rs 1.50 per plant. A 2,000-tonne order from Unilever, France is awaiting signing on the dotted line, and with a host of retail chains clamouring to reach this luscious fruit to more far-flung clients, the fear may not be entirely far fetched.

Tea Exports Decline In Volume, Earnings

Coonoor: Tea exports in 2007 are dropping behind compared with last year in respect of both the volume and earnings. An analysis of the information available with the Tea Board shows that in the first two months of 2007, the earnings suffered despite a marked increase in the unit price fetched because of the volume falling short of last year. In January and February 2007, Indian tea brought an average price of Rs 95.97 a kg as much as Rs 13 a kg more than the same months of 2006. But, the higher price decreased the intake by the importers and the volume shipped dropped to 24.9 million kgs from 31.3 million kgs. The shipments dropped in respect of both the North and South Indian teas. The North Indian teas fetched an average price of Rs 116.67 a kg - as much as Rs 11 more than last year. Consequently, the overall earnings declined to Rs 135.9 crore from Rs 152 crore. The South Indian teas fetched an average price of Rs 77.77 a kg as much as Rs 15 more than last year.
The actual shipments surpassed this to reach 203.86 million kgs. But, with the prices fluctuating heavily and the domestic market paying more than the overseas trade, a target for the value gains relevance along with the volume target. Last year, for instance, despite the volume surpassing the target, the earnings stagnated at Rs 1,830.98 crore because the unit price had risen only marginally - Rs 2.17 a kg - over the previous year when the volume risen was also marginal - 4 million kgsIn the current calendar, Indian teas are gaining significantly in prices, but with no value target, focussed attention to augment earnings might be affected as importers shy away when prices rule high.

South India Tea Production Affected By Drought

Kochi: Severe drought conditions in most of the tea plantations in South India are estimated to decrease the production in March and April. There has been a decline in out put up to February by 1.49 million kg to 26.82 mkg from 28.32 mkg in the corresponding period last year, United Planters Association of Southern Indian (UPASI) sources told. Lack of effective summer showers and increase in temperature during noon and mist during night would decrease the crop in Nilgiri Wayanad (Gudalur). In Anamallais, there is a severe drought decreasing the output. Koppa (Chickmagalur) is also experiencing dry spell due to which the April crop will be less.
In Vandiperiyar in Kerala, extended drought and delayed pre-monsoon showers and protracted drought with 130 days of rainless days as on March-end had affected the crop and lowered the production in March and April. Another worst affect area is the high range of Kerala (Munnar) where insufficient rain and widespread severe drought is being experienced in the older tea fields. However, in Nilgiris, which has received a rainfall of 45 mm, the out put is slightly higher than that of last year. But the crop did not move up to the expected levels due to dry conditions and very low relative humidity. North Indian output has also declined by 2.33 mkg during January-February 2007 to 9.19 mg from 11.52 mkg in the same period last year due to unfavourable weather conditions.

Rubber Witnesses Weak Trend

Kottayam: Spot rubber turned weak on April 10. RSS 4 down to Rs 93.50 and Rs 93.75 a kg from Rs 94.50 and Rs 94.25 a kg respectively at Kottayam and Kochi. The rubber futures declined quoting the most active April contract for RSS 4 at Rs 92.80 against Rs 94.05 a kg on MCX.The April contract for the grade dropped to Rs 92.70 (93.53), May to Rs 95.99 (96.85), June to Rs 99.99 (100.55) and July to Rs 101.35 (102.31) a kg on NMCE. Spot rubber rates were (Rs/kg): RSS-4: 93.50 (94.50); RSS-5: 92.50 (93.50); ungraded: 91.50 (92.50); ISNR 20: 92.50 (93.25) and latex 60 per cent : 64.70 (65.25).

Tea Board Asks Packeters, Blenders To Stop Adding Colours

Coonoor: Tea Board has urged the tea packeters and blenders to stop adding colours to tea as it is not allowed under the Prevention of Food Adulteration Act (PFA). While the PFA permits 24 natural flavours like cardamom, ginger, tulsi and mint to be mixed with tea, it does not allow any colours although permitted to be added for other food items including sweets, ice cream, jelly, jam and flavoured milk. The colours decrease the consumption of pure tea. So, it has asked the traders to withdraw such teas from the market. Only sub-standard teas are used for colouring and so, if the practice ends, the market would be rid of such teas.

IPC Index Show Up Ward Trend

Kochi: The International Pepper Community (IPC) index has shown a increasing trend in the last eight months with a slight break in November 2006. Pepper price index increased by 3.81 points for black and 2.33 points for white in February. Composite price of black pepper increased by 2.3 per cent to $2,573 a tonne while that of white pepper increased by 1.5 per cent to $3,641 a tonne. In February, the market for black pepper was mixed and relatively quiet in most origins such as Vietnam, Malaysia, Indonesia and China due to Lunar New Year holidays, particularly during second and third week. In India, the market was slower at the month beginning. But rates however, remained relatively steady. The active trading in India offset the quiet market of other origins. Cochin market eased towards the fourth week of February. During the month, rates of ungarbled black pepper fluctuated between Rs 11,400-11,900 a quintal. The average price was 8 per cent higher than that of January last. In Vietnam, black pepper market continued active with some orders being placed in the first week of the month. The market subsequently turned quiet due to the long Lunar New Year holiday.
During the first three weeks, the f.o.b. (free on board) prices were unchanged at $2,290 a tonne for 500g/l and $2,360 a tonne for 550g/l. During the fourth week, the price moved up to $2,350/tonne and $2,430/tonne for black 500g/l and 550g/l, respectively. On average, the price increased by 4 per cent when compared to the average price in January 2007. Prices, however, continued to be stronger from RM 8,100 a tonne at the beginning of February to RM 8,500 a tonne at the month's close. F.o.b. price was reported to have increased from $3,260 a tonne in the first week to $3,300 a tonne in the remaining weeks. Local rates were relatively stable at around IDR 20,000 to IDR 21,000 a kg or a marginal increase of 2 per cent when compared to January 2007. In Sri Lanka, the average price at pepper growing areas was SLRs 246 a kg, from SLRs 247 a kg in the previous weeks. The average local rate of black pepper in Sri Lanka increased by 11 per cent from January 2007. The market for white pepper was quiet and mixed during February 2007. Indonesia has limited supply of white pepper and the expected lower crop this year from Bangka will only be available some time in July.

In Vietnam, white pepper from new crop is not yet available in the market. In Sarawak and Hainan, materials for white pepper were also limited. In Bangka, local price declined from around IDR 30,250 a kg to IDR 28,000 a kg at the month's close. F.o.b. price of Muntok white was reported stable at $3,595 a tonne. Like black, local price of Sarawak white at Kuching grew stronger from RM 10,550 a tonne at the beginning of February to RM 11,500 a tonne at the month's close. On average, local price of white pepper increased by 6 per cent from the previous month. F.o.b. price was stable at $4,100 a tonne.

Pepper Futures Mkt Increases

Kochi: The pepper futures market increased on April 9, breaking the circuit level and reported continuous increase in Vietnam prices. Given this upward trend, speculators were pushing up the prices in the futures market. Spot rates also increased by Rs 600 a quintal despite a slow down in the domestic buying because of the rise in prices. Vietnam prices for 550 GL on April 9, said to have crossed to Rs 3,000 a tonne (fob). April contract on NCDEX shot up to Rs 16,135 a quintal on April 9, from last weekend close of Rs 15,223. The rise in other contracts was from Rs 935 to Rs 1,002 a quintal.
On NMCE, April contract increased to Rs 15,300 a quintal from Rs 14,552. The increase in other contracts was from Rs 902 to Rs 963 a quintal. The total turnover on NCDEX increased by 34,053 tonnes to 78,149 tonnes, while on NMCE it increased by 5,857 tonnes to 13,537 tonnes. The total open interest on NCDEX increased by 737 tonnes to 32,441 tonnes. However, April position decreased by 364 tonnes to 3,438 tonnes. May and June positions went up by 187 tonnes and 244 tonnes, respectively, to 15,639 and 9,329 tonnes. The spot rates in tandem with the upward swing in futures market shot up by Rs 600 a quintal on Monday to close at Rs14,500 (un-garbled) and 15,100 (MG 1).

Jakarta Meet Likely To Finalise Draft Of GAP For Pepper

Kochi: The International Pepper Community (IPC) will conduct a second meeting to finalise the draft of Good Agriculture Practices (GAP) for Pepper in Jakarta from April 24-25. Experts from India, Indonesia, Malaysia and Sri Lanka who met in Jakarta in November 2006 had outlined the IPC GAP for pepper. The draft GAP was circulated to member countries for suggestions/comments. IPC has so for got suggestions/comments from Brazil, India, Indonesia, Malaysia and the European Spice Association (ESA), and these would be discussed at the GAP meeting. Simultaneously a meeting to discuss the draft on IPC Integrated Pest Management (IPM) for Pepper will also be conducted in Jakarta from April 26-27. The IPM was discussed at the past two pepper-tech meetings. At the 30th pepper-tech meeting, a committee comprising experts from member countries and chaired by Dr Y.R. Sarma was formed. The committee stressed the importance of compiling all information available on pests and diseases of pepper. The committee also held a discussion subsequently at the 31st Pepper-tech meeting in Sri Lanka in September 2006.

Correction May Take Place In Pepper Futures

Kochi: A stiff situation in Vietnam has resulted in the pepper market getting overheated and a correction is likely to take place in the near term. The situation, therefore, advises that the investors should wait and watch till the situation changes in Vietnam. During the week, the futures market increased significantly. On NCDEX the increase was from Rs 1,215 to Rs1,431 a quintal, while on NMCE it was from Rs 1,002 to Rs 1,322 a quintal. The total open interest on NCDEX shot up by 3,782 tonnes to 31,704 tonnes, whereas on NMCE it moved up by 354 tonnes to 4,866 tonnes at April 7, close. The spot rates also increased by Rs 1,200 a quintal during the week.
The futures market on April 7, seemingly as a correction, declined. On NCDEX Apr contract down by Rs 70 a quintal to close at Rs 15,230 from Rs 15,300 on Friday. All the contracts except August fell by Rs 3 to Rs 3 a quintal. August increased by Rs 166 a quintal. On NMCE, April moved up by Rs 108 a quintal to close at Rs 14,699 from Rs 14,591. The total turnover on April 7, down by 17,012 tonnes to 44,096 tonnes on NCDEX, while on NMCE it moved up by 627 tonnes to 7,680 tonnes. The total open interest on NCDEX increased by 585 tonnes to 31,704 tonnes. Spot prices ruled firm at previous levels at Rs 13,900 (un-garbled) and Rs 14,500 (MG 1) a quintal at weekend close.

Black pepper rates maintained to be steady but market activities were slower. In Vietnam, the market was rather quiet as farmers were unwilling to sell pepper and prices increased further. In India, the market was quiet, but prices climbed further. At the Commodity Exchange, trading for April contract showed a downtrend. For May - June however, showed an upward trend. At Pangkal Pinang, white pepper rates at local market eased by 3 per cent. At Kuching, local prices were relatively stable, while FOB increased marginally by 1 per cent.

Rubber Idle On Easter Holidays

Kottayam: Spot rubber market maintained to stagnate under the spell of Easter holidays. RSS 4 was quoted unchanged at Rs 94.50 a kg at Kottayam and Kochi as on April 5. The April contract downed the shutters at Rs 94.16 (94.86), May at Rs 98.20 (98.79), June at Rs 102.25 (102.47) and July at Rs 103.50 (103.30) a kg for RSS 4. The open interest stood at 12,836 (12,685) lots with 4234 lots in April, 5465 lots in May, 2570 lots in June and 567 lots in July. The May contract for RSS 4 concluded the session at Rs 98.10 against Rs 98 a kg on MCX. Spot rubber rates were (Rs/kg): RSS-4: 94.50 (94.50) RSS-5: 93.50 (93.50); Ungraded: 92.50 (92.50); ISNR 20: 93.25 (93.25) and Latex 60 per cent: 64.70 (64.70).

Oilmeal Export Surges

Mumbai: Export of oilmeals soared to a new high in terms of both volume and value. Shipments during fiscal 2006-07 aggregated 51.7 lakh tonnes (lt) valued at Rs 4,300 crore. This represents a 17 per cent rise by volume and 21 per cent by value. Rapeseed extractions recorded an increase to 9.7 lt. from 5.3 lt the previous year. Soyabean extraction maintained to dominate the export basket with 36.6 lt (34.2 lt), while ricebran extraction shipments doubled to 2.5 lt. Castor meal export was unchanged at 2.0 lt owing to lower crop.

Rubber Witnesses Up Trend

Kottayam: The domestic rubber futures improved further on April 6. The last traded rate for RSS 4 in the most active May delivery was Rs 97.89 against Rs 97.04 a kg on MCX. The April contract for the grade was quoted better at Rs 94.85 (94.15), May at Rs 98.75 (97.39), June at Rs 102.50 (100.96) and July at Rs 103.60 (102.32) per kg on NMCE. The volumes were 688 (1,128) lots, while the open interest was 12,685 (12,660) lots with 4267 lots in April, 5394 lots in May, 2475 lots in June and 549 lots in July. The May futures for RSS 3 firmed up to 277.3 Yen (Rs 99.71) from 274 Yen a kg at TOCOM.

Pepper Witnesses Uptrend

Kochi: Pepper futures market maintained its upsurge on reported tight supply position and consequent price rise in Vietnam. NCDEX is having a stock of 5,864 tonnes in the warehouses as on April 4, while NMCE had 7,639 tonnes as on April 3. April contract on NCDEX increased by Rs 504 a quintal to Rs 15,318 on April 6. The increase in other contracts was from Rs 386 to Rs 498 a quintal. On NMCE, April contract went up by Rs 464 a quintal to Rs 14,575. The total turnover on NCDEX increased by 532 tonnes to 61,108 tonnes, while on NMCE, it declined by 4,458 tonnes to 7,053 tonnes. The total open interest on NCDEX declined by 164 tonnes to 31,119 tonnes.

Rubber Rates Rule Steady

Kottayam: Physical rubber rates were quoted firm on April 5. Sheet rubber RSS 4 completed firm at Rs 94.50 a kg both at Kottayam and Kochi as on April 4. The April contract was quoted at Rs 94.20 (Rs 93.89), May at Rs 97.29 (Rs 96.97), June at Rs 100.62 (Rs 100.04) and July at Rs 102.35 (Rs 101.48) a kg for RSS 4. The open interest remained steady at 12,660 (12,660) lots with 4312 lots in April, 5,369 lots in May, 2,434 lots in June and 545 lots in July. The April delivery contract for RSS 4 increased to Rs 94.20 from Rs 93.41 a kg at MCX. In the international scene, RSS 3 fell to Rs 99.59 a kg from Rs 100.72 a kg at Bangkok. The spot rates were (in Rs/per kg): RSS-4: 94.50 (94.50); RSS-5: 93.50 (93.50); Ungraded: 92.50 (92.50); ISNR 20: 93.25 (93.25) and Latex 60%: 64.70 (64.70).

Cardamom Witnesses Up Trend

Kochi: Cardamom rates continued their upward swing on good purchasing support at sales held in Kerala and Tamil Nadu during the week. The individual average rates were above Rs 360 a kg. At the CPA auction held on April 2, at Bodinayakannur the average price stood at Rs 360.62 while on April 3, at Header Systems auction in Nedumkandam it was at Rs 356.88 a kg. At the auction held on Wednesday at Kumily by the Cardamom Processing and Marketing Company (CPMC) the average price went up to Rs 380.18. Exporters bought 7.5 tonne. Domestic purchasers were active anticipating that the prices might move up further.
The highest price on April 4, was Rs 527 a kg fetched by 8 mm bold good colour. Price of this variety ranged from Rs 500 - Rs 527 a kg. 7.5 mm bold was being sold at Rs 450- Rs 475 while 7 mm at Rs 420 - Rs 450 a kg. Current bulk was fetching Rs 390 - Rs 400 a kg. The total arrivals during the current season up to April 4 stood at 6,982 tonne as against 8,000 tonne in the same period last season. Sales were at 6,425 tonne compared to 7,468 tonne. Prices of the graded varieties as on March 31 were AGEB Rs 475 - Rs 485, AGB Rs 385- Rs 395, AGS Rs 370 - Rs 380 and AGS 1 Rs 335 - Rs 345 a kg.

Pulses Exports May Touch 3.5 Lakh Tonnes

During April-January 2006-07 alone over 3.19 lakh tonnes pulses were exported thereby leading to rise in domestic prices of these commodities and push up inflationary pressure further. According to the source, total export of pulses may touch a staggering 3.5 lakh tonnes during 2006-07. Unscrupulous traders, according to sources, took advantage of the steep increase in international prices of gram, arhar, moong and urad dals. Prices of four major pulse items virtually doubled in international markets like Australia, Pakistan, Tanzania, Myanmar, China and Thailand during last two years.
For instance, the price of gram sent up to US $ 570-580 by March 2007 as against US $ 300-303 per tonne during corresponding month in 2005. Similar is the case of arhar dal that was quoted at US $ 470 - 480 per tonne in March 2007 as against US $ 300-325 in March 2005. Similar is the kind of price surge reported in both Moong and Urad making it attractive for the traders to export. A large chunk of exports, according to sources, were undertaken by traders after getting the old Letters of Credit extended to beat the ban. Following the ban, no fresh letters of credit were to be opened after June 22, 2006. Hence, the pulses exports were undertaken against old LCs, sources divulged.

Interestingly enough, official figures compiled by the government, put the export of pulses at a much lower one lakh tonnes after a ban was imposed effective from June 22, 2006.

Sources divulged that the investigative agencies have zeroed in on information that would establish the nexus between two high ranking politicians, banks' representatives and traders that undertook export of pulses even after a ban was imposed. Only on March 9, 2007 that the Directorate General of Foreign Trade (DGFT) plugged the loophole and closed the window "transitionary arrangement" that was misused by traders to export pulses despite the ban.

Further, even now, the Government is entertaining a proposal to permit the export of pulses against pre-import of raw material. Sources divulged that the panel of secretaries led by Cabinet Secretary did not take a decision to allow export of pulses following apprehension that this may lead to stepping up of charges by opposition parties that this would fuel inflation further.

Increasing Cotton Rates Concern Small Spinners

Coimbatore: The South India Small Spinners Association (Sisspa) has said the Cotton Corporation of India (CCI) decision to increase cotton prices will only encourage the private trade to further jack up their rates which will disturb the small textile mills raw material planning. CCI had in the past 10 days jacked up its rates by Rs 1,000 per candy (of 356.65 kg) and this had made the CCI's prices far higher than prevailing ones.

National Commodity Exchanges Reports 99% Turnover Growth

Mumbai: National commodity exchanges have recorded 99 per cent growth in their turnover at Rs 40.72 lakh crore for the financial year ended March 31compared with Rs 21.34 lakh crore during the same period of the previous year. MCX has kept its leadership over other national commodity exchanges by reporting 138 per cent increase in turnover at Rs 22.93 lakh crore (Rs 9.61 lakh crore). MCX daily average turnover in FY07 was Rs 9,463 lakh crore. NCDEX recorded 7 per cent growth at Rs 11.67 lakh crore (Rs 10.91 lakh crore), while that of NMCE was Rs 1.17 lakh crore. Regional commodity exchanges have logged in Rs 1.2 lakh crore in FY07.

Pepper Witnesses Mixed Trend

Kochi: Pepper futures market saw a mixed trend on April 3, with the distant positions showing down. The Kerala state procurement agency, Marketfed will sell 80 tonnes of pepper from its stock on April 4, has also slowed down the purchasing activities. Bullish trend was seen in domestic market. April contract on NCDEX moved up by Rs 3 a quintal to Rs 13,830. May and June increased by Rs 11 and Rs 78 a quintal, respectively, while July, August and September dipped by Rs 94,Rs 105 and Rs 89 a quintal, respectively. The decline in other contracts was from Rs 29 to Rs 68 a quintal except May, which moved up by Rs 3 a quintal. The total turnover on NCDEX decreased by 5,537 tonnes to 28,826 tonnes, while on NMCE it declined by 877 tonnes to 5,213 tonnes. The total open interest on NMCE decreased by 43 tonnes to 4,546 tonnes. April position stood at 340 tonnes, while May was down by 68 tonnes to 2,789 tonnes. Spot rates ruled firm on purchasing support at previous level of Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) a quintal.

Pepper Future Witnesses Mixed Trend

Kochi: Pepper futures market increased slightly on April 2, on purchasing support. Though the market opened on a strong note it slipped later on reports that Vietnam was slightly easier and closed with marginal increase on NCDEX. On NMCE, all the contracts saw a substantial drop. On NCDEX, April contract increased by Rs 2 a quintal to close at Rs 13,847. Domestic demand maintained to be good and purchasing activities were going on. Spot rates increased on purchasing support by Rs 200 a quintal to close at Rs 12,900 (un-garbled) and Rs 13,500 (MG 1) on April 2.

Rubber Witnesses Steady Trend

Kottayam: Spot rubber ruled firm on April 2. Sheet rubber was flat at Rs 94 a kg both at Kottayam and Kochi as on March 31. The rubber futures completed weak on NMCE. The April contract declined to Rs 93.24 (93.38), May Rs 96.63 (96.87), June Rs 99.90 (100.06) and July to Rs 101 (100.31) a kg for RSS 4. The open interest was calculated at 12,665 (12,431) tonnes with 4,591 tonnes in April, 5,386 tonnes in May, 2,198 tonnes in June and 490 tonnes in July. The April delivery contract dropped to Rs 92.51 from Rs 92.58 a kg on MCX. The May futures for RSS 3 increased to 278.2 yen (Rs 102.11) from 275.2 yen a kg at TOCOM. The grade (spot) closed better by 90 paise at Rs 100.57 (99.67) a kg at Bangkok. The spot rubber rates per kg are as follows: RSS-4: 94 (94); RSS-5: 93 (93); Ungraded: 92 (92); ISNR 20: 92.75 (92.75); and Latex 60%: 64.70 (64.20).

Silver Performance Witnesses Divergent Trend

Mumbai: April marks the starting of the second quarter of the calendar year, which is usually records strong growth in commodity consumption. Historically, commodity performance shows a divergent trend in April. Silver and aluminium usually run into unfavourable returns this month, while for natural gas and WTI crude, historical returns are positive. April will be a mixed month for precious metals. Maximum returns are placed at 17 per cent and minimum return -13 per cent (-13 per cent). Odds of an advance of gold (spot) this month are 56 per cent, with hoped maximum return of 13 per cent and minimum of -9 per cent (- 9 per cent). For copper, the odds of advance are 50 per cent with maximum and minimum return respectively at 30 per cent and -15per cent.

Govt Favours Organic Coffee Cultivation In Araku Valley

Visakhapatnam: The Coffee Board will extend all assistance to increase the coffee cultivation area (75,000 acres) in the Araku Valley of Visakhapatnam district in the next five years and the production (currently 4,000 tonnes) will also be doubled. The Coffee Board had identified the tribal belt of Araku as one of the most important non-traditional coffee-growing areas in the country. The crop is important from a socio-economic point of view, as it is giving sustenance to tribals in the eastern ghats and second, the coffee grown in the area is organic, which has great demand abroad.
The Coffee Board will establish coffee pulpers in 11 mandals where coffee was currently being grown. The Paderu Integrated Tribal Development Agency and the Coffee Board would jointly bear the cost of the crop expansion project. On marketing, the Coffee Board will only look after the production and processing of coffee and private companies would be involved in marketing and brand promotion. Already, companies such as ITC have entered the field in a small way and, as the area expands, more companies will join the market.